We have frequently heard of problems with reverse mortgage loans, including that there are sometimes reverse mortgage scams that cause people to unwittingly go into a significant amount of debt. However, there is a flipside to that story. The reverse mortgage loan can be a means of getting yourself out of a trouble when another type of scam threatens to ruin your life.
An example of this was reported on recently by TampaBay.com. (The article can be read in full here; scroll down to the center of the page for the story.) The gist of the story is that a couple was scammed out of a significant amount of money as a result of their relationship with a fraudulent grant writer. The writer was caught and imprisoned but that didn't give the couple their money back. The debt was threatening to cause them to foreclose on their home. However, they are reviewing the option of a reverse mortgage loan to resolve the problem.
It's unfortunate that scams happen. You should always be cautious in your dealings with others, particularly where significant sums of money are concerned. But it's nice to realize that there are loan options out there, such as the reverse mortgage loan, that can get you out of truoble if you do succumb to a scam. Work with a finance professional to review your options.
Question of the Day: How would you get out of debt if caught by a scam?
